Washington Report: Don’t Let Up on Swipe Fee Grassroots (NACS Online)

This week NACS unleashed a grassroots firestorm in support of amendments to the financial services reform package that could ease the pain of swipe fees. Sen. Richard Durbin (D-IL) stood up for merchants across the country when he introduced his two amendments (see details below).

Retailers must continue to build the groundswell of attention to swipe fees. This is what we have been asking for and now is the time to tell your senators to take action. Our opposition is well organized and well funded — we cannot underestimate them. They took notice of our efforts and are pushing Senate leadership not to vote on our amendments. If there is no vote, then the banks win.

Click here for a list of Senate phone numbers, make your call and pass on the word for others to call. Your message should be, “I am counting on your support of the Durbin/Leahy/Landrieu Amendment #3771 and the Durbin Amendment #3769. I am counting on you to tell Senate leaders there must be a vote on these amendments.”

Details of Amendments
The first is the Durbin-Leahy-Landrieu Amendment #3771 to stop credit/debit card networks from imposing anti-competitive restrictions on the small businesses, merchants and government agencies who accept their cards. The amendment would say that sellers can do the following things without being threatened or punished by card networks like Visa and MasterCard:

Offer discounts to customers to use a competing card network (e.g., the amendment would let a store that accepts Visa offer a discount for a customer to use MasterCard or Discover. Visa currently prohibits such discounts);

Offer discounts for use of cash, check, debit card or stored-value card (current law does not fully ensure that merchants can offer these discounts); and

Set a minimum or maximum transaction amount for payment by card (small businesses lose money on transactions when they cannot set these amounts)

The second is Durbin-Specter-Whitehouse Amendment #3769 to ensure that interchange fees charged for debit card transactions are reasonable and proportional to the costs incurred in processing the transaction.

With this amendment, Visa and MasterCard will be prevented from continuing to increase debit card interchange fee rates, which currently amount to 1% to 2% of the transaction amount even though the actual cost of processing a debit transaction is far less.

The amendment would direct the Fed to issue regulations to ensure that interchange fees imposed on debit card transactions be “reasonable and proportional” to the cost incurred in processing the transaction. (The rules would have a carve-out for small bank debit cards).

Vermont Close to Being First State to Act on Swipe FeesVermont’s House and Senate unanimously passed landmark legislation earlier this week that directly addresses credit card interchange fees and other practices by the credit card companies. If signed by Vermont’s Governor Jim Douglas, the law will take effect January 1, 2011.

The Vermont Retail Association and the Vermont Grocers Association, who combined represent more than 1,000 Vermont businesses, “were instrumental” in supporting the legislation, especially noting the lack of negotiating power that the individual businesses have when dealing with credit card companies. Both associations worked intensively with legislators, businesses, and the card companies to help steer the bill to passage.

Key points of the new legislation include:

Merchants can set card purchase minimums up to $10.

Merchants can offer discounts or other benefits for payment by lower-cost cards or cash.

Merchants can refuse credit cards in one or multiple locations.

Directs the Vermont Banking & Insurance Department to review interchange fees charged to merchants and make recommendations to the legislature.

This law will provide immense benefits for Vermont businesses and consumers. It may also pave the way for similar legislation in other states nationwide. The Vermont house and senate leadership deserve special praise for their role in passing this groundbreaking legislation,” said Tasha Wallis, Executive Director of the Vermont Retail Association,

The new law gives hundreds of small businesses here much-needed protection against abusive practices by the credit-card companies. It represents overdue restraint of an out-of-control industry,” said Jim Harrison, President of the Vermont Grocers Association.

Democrats Contemplate Rolling Out Climate Change Bill Without Republican SupportSen. Lindsey Graham (R-SC) had been working with Sens. John Kerry (D-MA) and Joe Lieberman (I-CT) on climate change legislation but a spat over immigration with Senate Majority Leader Harry Reid (D-NV) led him to drop out of the discussions. A draft of the trio’s bill was expected last week and yesterday Lieberman said they are preparing to roll out the bill without Graham.

“He’ll be supportive but not with us,” Lieberman said. “I prefer it the other way, but we’ve got enough support that we want to get it started.” Kerry also indicated that they may proceed without Graham officially on the bill but did not confirm any decisions had been made.

Climate change legislation has a lot of hurdles to clear; the recent oil spill in the Gulf of Mexico has complicated the debate. According to Reid’s top energy and climate aide, Chris Miller, “It’s unclear whether there will be bipartisan support. We are hopeful, given the short time frame, that we’ll get some support, because if we don’t, chances we’re going to be able to legislate on this year and in the next few years is going to decline significantly.”

Estate Tax Could Become Part of Small Business Incentives PackageThe Senate Finance Committee hopes to move a $10 billion package of small business incentives sometime this month. Chairman Max Baucus (D-MT) has asked members to hold off on trying to amend the bill with unrelated provisions. It seems however that pressure to do something about the estate tax may thwart his efforts.

If Congress does not take action the estate tax will go back to 55 percent and in an election year it is obvious this would not be popular with the electorate. Sens. John Kyl (R-AZ) and Blanche Lincoln (D-AR) have been advocating for a lower rate (35 percent) and an increase in the exemption level to $5 million per spouse. Kyl feels that this small business incentive package could be just the vehicle for considering the issue. Other Senators feel that any controversial topic should be off the table so that the package can easily pass.

A committee vote could occur as early as next week

State Name Senate Office State Office

AK Senator Mark Begich (202) 224-3004 (907) 271-5915

AK Senator Lisa Murkowski (202) 224-6665 (907) 271-3735

AL Senator Jeff Sessions (202) 224-4124 (334) 244-7017

AL Senator Richard Shelby (202) 224-5744 (334) 223-7303

AR Senator Blanche Lincoln (202) 224-4843 (501) 375-2993

AR Senator Mark Pryor (202) 224-2353 (501) 324-6336

AZ Senator Jon Kyl (202) 224-4521 (602) 840-1891

AZ Senator John McCain (202) 224-2235 (602) 952-2410

CA Senator Barbara Boxer (202) 224-3553 (916) 448-2787

CA Senator Dianne Feinstein (202) 224-3841 (310) 914-7300

CO Senator Michael Bennet (202) 224-5852 (303) 455-7600

CO Senator Mark Udall (202) 224-5941 (719) 471-3993

CT Senator Christopher Dodd (202) 224-2823 (860) 258-6940

CT Senator Joseph Lieberman (202) 224-4041 (860) 549-8463

DE Senator Thomas Carper (202) 224-2441 (302) 674-3308

DE Senator Edward Kaufman (202) 224-5042 (302) 573-6345

FL Senator George LeMieux (202) 224-3041 (407) 254-2573

FL Senator Bill Nelson (202) 224-5274 (850) 942-8415

GA Senator C. Saxby Chambliss (202) 224-3521 (770) 763-9090

GA Senator Johnny Isakson (202) 224-3643 (770) 661-0999

HI Senator Daniel Akaka (202) 224-6361 (808) 522-8970

HI Senator Daniel Inouye (202) 224-3934 (808) 541-2542

IA Senator Charles Grassley (202) 224-3744 (515) 288-1145

IA Senator Tom Harkin (202) 224-3254 (515) 284-4574

ID Senator Michael Crapo (202) 224-6142 (208) 334-1776

ID Senator James Risch (202) 224-2752 (208) 342-7985

IL Senator Roland Burris (202) 224-2854 (312) 886-3506

IL Senator Richard Durbin (202) 224-2152 (217) 492-4062

IN Senator Evan Bayh (202) 224-5623 (317) 554-0750

IN Senator Richard Lugar (202) 224-4814 (317) 226-5555

KS Senator Sam Brownback (202) 224-6521 (785) 233-2503

KS Senator Pat Roberts (202) 224-4774 (785) 295-2745

KY Senator Jim Bunning (202) 224-4343 (270) 885-1212

KY Senator Mitch McConnell (202) 224-2541 (502) 582-6304

LA Senator Mary Landrieu (202) 224-5824 (225) 389-0395

LA Senator David Vitter (202) 224-4623 (504) 589-2753

MA Senator Scott Brown (202) 224-4543 (617) 565-3170

MA Senator John Kerry (202) 224-2742 (617) 565-8519

MD Senator Benjamin Cardin (202) 224-4524 (410) 962-4436

MD Senator Barbara Mikulski (202) 224-4654 (410) 263-1805

ME Senator Susan Collins (202) 224-2523 (207) 622-8414

ME Senator Olympia Snowe (202) 224-5344 (207) 622-8292

MI Senator Carl Levin (202) 224-6221 (313) 226-6020

MI Senator Deborah Stabenow (202) 224-4822 (517) 203-1760

MN Senator Al Franken (202) 224-5641 (651) 221-1016

MN Senator Amy Klobuchar (202) 224-3244 (612) 727-5220

MO Senator Christopher Bond (202) 224-5721 (573) 634-2488

MO Senator Claire McCaskill (202) 224-6154 (816) 421-1639

MS Senator Thad Cochran (202) 224-5054 (601) 965-4459

MS Senator Roger Wicker (202) 224-6253 (662) 429-1002

MT Senator Max Baucus (202) 224-2651 (406) 449-5480

MT Senator Jon Tester (202) 224-2644 (406) 449-5401

NC Senator Richard Burr (202) 224-3154 (336) 631-5125

NC Senator Kay Hagan (202) 224-6342 (336) 333-5311

ND Senator Kent Conrad (202) 224-2043 (701) 258-4648

ND Senator Byron Dorgan (202) 224-2551 (701) 250-4618

NE Senator Michael Johanns (202) 224-4224 (402) 758-8981

NE Senator E. Nelson (202) 224-6551 (402) 441-4600

NH Senator Judd Gregg (202) 224-3324 (603) 225-7115

NH Senator Jeanne Shaheen (202) 224-2841 (603) 647-7500

NJ Senator Frank Lautenberg (202) 224-3224 (973) 639-8700

NJ Senator Robert Menendez (202) 224-4744 (973) 645-3030

NM Senator Jeff Bingaman (202) 224-5521 (505) 988-6647

NM Senator Tom Udall (202) 224-6621 (505) 988-6511

NV Senator John Ensign (202) 224-6244 (775) 885-9111

NV Senator Harry Reid (202) 224-3542 (775) 882-7343

NY Senator Kirsten Gillibrand (202) 224-4451 (518) 431-0120

NY Senator Charles Schumer (202) 224-6542 (518) 431-4070

OH Senator Sherrod Brown (202) 224-2315 (216) 522-7272

OH Senator George Voinovich (202) 224-3353 (614) 469-6697

OK Senator Tom Coburn (202) 224-5754 (405) 231-4941

OK Senator James Inhofe (202) 224-4721 (405) 608-4381

OR Senator Jeffery Merkley (202) 224-3753 (503) 326-3386

OR Senator Ron Wyden (202) 224-5244 (503) 589-4555

PA Senator Robert Casey (202) 224-6324 (717) 231-7540

PA Senator Arlen Specter (202) 224-4254 (717) 782-3951

RI Senator Jack Reed (202) 224-4642 (401) 528-5200

RI Senator Sheldon Whitehouse (202) 224-2921 (401) 453-5294

SC Senator Jim DeMint (202) 224-6121 (864) 233-5366

SC Senator Lindsey Graham (202) 224-5972 (803) 933-0112

SD Senator Tim Johnson (202) 224-5842 (605) 332-8896

SD Senator John Thune (202) 224-2321 (605) 334-9596

TN Senator Lamar Alexander (202) 224-4944 (615) 736-5129

TN Senator Bob Corker (202) 224-3344 (423) 756-2757

TX Senator John Cornyn (202) 224-2934 (512) 469-6034

TX Senator Kay Hutchison (202) 224-5922 (512) 916-5834

UT Senator Robert Bennett (202) 224-5444 (801) 524-5933

UT Senator Orrin Hatch (202) 224-5251 (801) 524-4380

VA Senator Mark Warner (202) 224-2023 (804) 775-2314

VA Senator James Webb (202) 224-4024 (804) 771-2221

VT Senator Patrick Leahy (202) 224-4242 (802) 229-0569

VT Senator Bernard Sanders (202) 224-5141 (802) 862-0697

WA Senator Maria Cantwell (202) 224-3441 (206) 220-6400

WA Senator Patty Murray (202) 224-2621 (206) 553-5545

WI Senator Russell Feingold (202) 224-5323 (414) 276-7282

WI Senator Herb Kohl (202) 224-5653 (608) 264-5338

WV Senator Robert Byrd (202) 224-3954 (304) 342-5855

WV Senator John Rockefeller (202) 224-6472 (304) 347-5372

WY Senator John Barrasso (202) 224-6441 (307) 772-2451

WY Senator Michael Enzi (202) 224-3424 (307) 682-6268

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This entry was posted on Friday, May 7th, 2010 at 8:25 am and is filed under merchant interchange. You can follow any responses to this entry through the RSS 2.0 feed.
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WayTooHigh.com: The Credit Card Interchange Report, is edited by Mitch Goldstone, co-founder of California-based ScanMyPhotos.com, the international online photo preservation service.
Goldstone and co-owner, Carl Berman are also the lead plaintiffs and class representatives in a antitrust class-action litigation against Visa, MasterCard and major banks that was filed in 2005.
This informational web site was created to provide news and commentary updates only. None of the information posted on WayTooHigh.com is intended to constitute legal arguments; it reflects only the opinions of its co-editors and not of any other plaintiffs or other parties involved in the merchant antitrust litigation. The information is not guaranteed to be correct, complete, or current. We make no warranty, express or implied, about the accuracy or reliability of the information posted by WayTooHigh.com or at any other Web site to which this site is linked. (c) 2010